Transcript Tom Peters’ Re-imagine! The Leadership50 29September2005 Slides at … tompeters.com THREE BILLION NEW CAPITALISTS —Clyde Prestowitz m.

Tom Peters’
Re-imagine!
The Leadership50
29September2005
Slides at …
tompeters.com
THREE BILLION
NEW
CAPITALISTS
—Clyde Prestowitz
m
h
“If you don’t like
change, you’re
going to like
irrelevance even
less.”
—General Eric Shinseki, Chief of Staff. U. S. Army
The
Leadership
50
I. The Basic
Premise.
1. Leadership Is a …
Mutual
Discovery
Process.
“Ninety percent of what
we call ‘management’
consists of making it
difficult for people to
get things done.” – Peter Drucker
“I don’t
know.”
Quests!
Organizing Genius / Warren Bennis
and Patricia Ward Biederman
“Groups become great only when
everyone in them, leaders and
members alike, is free to do his or
her absolute best.”
“The best thing a leader can do for a
Great Group is to allow its
members to discover their
greatness.”
Yes!!!!!!!!!!!!!!!!!
“free to do his or her
absolute best” …
“allow its members
to discover their
greatness.”
“Nobody can prevent
you from choosing to
be exceptional.” —Mark Sanborn,
The Fred Factor
“To live is the rarest thing in the
world. Most people exist,
That is all.”
—Oscar Wilde
“Make your life itself a
creative work of art.” —Mike Ray, The Highest
Goal
Go to the people
Live with them
Learn from them
Love them
Start with what they know
Build with what they have
But with the best leaders
When the work is done
The task accomplished
The people will say
“We have done this ourselves.”
Lao Tsu (700 BC)
2. Leaders
DECENTRALIZE!
DECENTRAL-IZE!
2. Leaders
The SE22:
Origins of
SUSTAINABLE
ENTREPRENEURSHIP
SE22/Origins of Sustainable Entrepreneurship
1. Genetically disposed to Innovations that upset apple carts (3M, Apple, FedEx,
Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun,
Fox, Stanford University, MIT)
2. Perpetually determined to outdo oneself, even to
the detriment of today’s $$$ winners (Apple, Cirque du Soleil, Nokia, FedEx)
3. Treat History as the Enemy (GE)
4. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony)
5. Use “Strategic Thrust Overlays” to Attack Monster Problems (Sysco, GSK,
GE, Microsoft)
6. Establish a “Be on the COOL Team” Ethos. (Most PSFs, Microsoft)
7. Encourage Vigorous Dissent/Genetically “Noisy” (Intel, Apple,
Microsoft, CitiGroup, PepsiCo)
8.
“Culturally” as well as organizationally
Decentralized (GE, J&J, Omnicom)
9. Multi-entrepreneurship/Many Independent-minded Stars (GE, PepsiCo)
SE22/Origins of Sustainable Entrepreneurship
10. Keep decentralizing—tireless in pursuit of
wiping out Centralizing Tendencies (J&J, Virgin)
11. Scour the world for Ingenious Alliance Partners—especially
exciting start-ups (Pfizer)
12. Acquire for Innovation, not Market Share (Cisco, GE)
13. Don’t overdo “pursuit of synergy” (GE, J&J, Time Warner)
14. Execution/Action Bias: Just do it … don’t obsess on how it
“fits the business model.” (3M, J & J)
15. Find and Encourage and Promote Strong-willed/Hypersmart/Independent people (GE, PepsiCo, Microsoft)
16. Support Internal Entrepreneurs/Intrapreneurs (3M, Microsoft)
17. Ferret out Talent … anywhere and everywhere/“No limits”
approach to retaining top talent (Nike, Virgin, GE, PepsiCo)
“‘Decentralization’
is not a piece of
paper. It’s not me.
It’s either in your
heart, or not.” —
Brian Joffe/BIDvest
HP’s Big “Duh”!
Decentralize ($90B)
Undo “Matrix”
Accountability
Source: “HP Says Goodbye To Drama”/
BW/09.05/re Mark Hurd’s first 5 months
II. The
Leadership
Types.
3. Great Leaders Declaiming on the
Vision from the Mountaintop Are
Great Talent
Developers (Type I
Leadership) are the Bedrock of
Important – but
Organizations that Perform Over the
Long Haul.
25/8/53*
(*Damn it!)
“Leaders
‘do’ people.
Period.”
—Anon.
Whoops: Jack
didn’t have a vision!
Raided:
GE
PepsiCo
“Leaders
‘do’ people.
Period.”
—Anon.
Les Wexner: From
sweaters to
people!
4. But Then Again, There
Are Times When This
“Visionary Stuff”
(Type II Leadership)
Actually Works!
“A leader is a
dealer in
hope.”
Napoleon
5. Find & embrace the
“Businesspeople”!
(Type III Leadership)
I.P.M.
(Inspired Profit
Mechanic)
6. All Organizations
Need the Golden
Leadership
Triangle.
The Golden Leadership
Triangle: (1) Talent
Fanatic-Mentor …
(2) Creator-Visionary …
(3) Inspired Profit
Mechanic.
7. Leadership Mantra
#1: IT
ALL
DEPENDS!
Renaissance Men
are … a snare, a
myth, a delusion!
III. The
Leadership
Dance.
8. Leaders …
SHOW UP!
MBWA
“The first and greatest
imperative of
command is to be
present in person. Those
who impose risk must be
seen to share it.” —John Keegan,
The Mask of Command
“A body can
pretend to care,
but they can’t
pretend to be
there.”
— Texas Bix Bender
P.S. …
5,000
miles for a 5
min. meeting!
Mark McCormack:
9. Leaders …
LOVE the
MESS!
“I’m not
comfortable
unless I’m
uncomfortable.”
—Jay
Chiat
“If things seem
under control,
you’re just not
going
fast enough.”
Mario Andretti
10. Leaders
“We have a
‘strategic’ plan.
It’s called doing
things.”
— Herb Kelleher
The Kotler Doctrine:
1965-1980: R.A.F.
(Ready.Aim.Fire.)
1980-1995: R.F.A.
(Ready.Fire!Aim.)
1995-????: F.F.F.
(Fire!Fire!Fire!)
A man approached JP Morgan, held up an envelope, and said,
“Sir, in my hand I hold a guaranteed formula for success, which I
will gladly sell you for $25,000.”
“Sir,” JP Morgan replied, “I do not know what is in the envelope,
however if you show me, and I like it, I
give you my word as a gentleman that I will pay you what you
ask.”
The man agreed to the terms, and handed over the envelope. JP
Morgan opened it, and extracted a single sheet of paper. He gave
it one look, a mere glance, then handed the piece of paper back
to the gent.
And paid him the
agreed-upon $25,000.
1. Every morning, write a
list of the things that
need to be done that day.
2. Do them.
Source: Hugh MacLeod/tompeters.com/NPR
11. Leaders
Re
-do.
“If Microsoft is good at anything, it’s
avoiding the trap of worrying about
criticism. Microsoft fails constantly.
They’re eviscerated in public for lousy
products. Yet they persist, through
version after version, until they get
something good enough. Then they
leverage the power they’ve gained in
other markets to enforce their standard.”
Seth Godin, Zooming
“If it works,
it’s obsolete.”
—Marshall McLuhan
12. BUT … Leaders
Know When to
Wait.
Tex Schramm:
The
“too hard”
box!
13. Leaders Are …
Optimists.
Hackneyed but none the less
LEADERS SEE
CUPS AS “HALF
FULL.”
true:
“[Ronald
Reagan] radiated
an almost
transcendent
happiness.”
Half-full Cups:
—Lou Cannon
14. BUT … Leaders
Have to Deliver, So They
Worry About “Throwing
the Baby Out with the
Bathwater.”
“Damned If You
Do, Damned If You
Don’t, Just Plain
Damned.”
Subtitle in the chapter, “Own Up to the Great Paradox: Success
Is the Product of Deep Grooves/ Deep Grooves Destroy
Adaptivity,” Liberation Management (1992)
15. Leaders
FOCUS!
“To
Don’t ”
List
“I used to have a rule for myself that at any
point in time I wanted to have in mind — as
it so happens, also in writing, on a little card
I carried around with me — the three big
things I was trying to get done.
Three.
Not two.
Not four. Not five. Not ten. Three.”
— Richard Haass, The Power to Persuade
16. Leaders … Set
CLEAR DESIGN
SPECS.
K.I.S.S.
“Really Important
Stuff”: Roger’s
Rule of Three!
Ridin’ with Roger: “What
have
you done to
DRAMATICALLY
IMPROVE quality in the
last 90 days?”
Bills Rule of …
Visibility!
Danger:
S.I.O.
(Strategic
Initiative Overload)
1@T: (1) Neutron
JackWorld/
Jack. (Banish bureaucracy.) (2) “1, 2
or out” Jack. (Lead or leave.) (3)
“Workout” Jack. (Empowerment,
GE style.) (4) 6-Sigma Jack. (5)
Internet Jack. (Throughout)
TALENT JACK!
Don Kennedy/
Stanford: from quantity
(raw #) to quality (top 3)
IV. If It’s Not
Broken …
Break It!
17. Leaders …
FORGET!/
Leaders …
DESTROY!
Forget>“Learn”
“The problem is never
how to get new,
innovative thoughts
into your mind, but
how to get the old
ones out.”
Dee Hock
18. Leaders Do
Not … Mindlessly
Bulk Up.
“I am often asked by would-be
entrepreneurs seeking escape from life
within huge corporate structures, ‘How
do I build a small firm for myself?’ The
Buy a
very large one
and just wait.”
answer seems obvious:
—Paul Ormerod, Why Most Things Fail:
Evolution, Extinction and Economics
Forbes100 from 1917 to 1987: 39
members of the Class of ’17 were alive
in ’87; 18 in ’87 F100; 18 F100
“survivors” underperformed the market
by 20%; just 2 (2%), GE & Kodak,
outperformed the market 1917 to 1987.
S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were
alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957
to 1997.
Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why
Companies That Are Built to Last Underperform the Market
“Not a single company that
qualified as having made a
sustained transformation
ignited its leap with a big
acquisition or merger. Moreover,
comparison companies—those that failed to make a
leap or, if they did, failed to sustain it—often tried to
make themselves great with a big acquisition or
merger. They failed to grasp the simple truth that
while you can buy your way to growth, you cannot
buy your way to greatness.” —Jim Collins/Time/11.29.04
“When asked to name just one big merger
that had lived up to expectations, Leon
Cooperman, former cochairman of
Goldman Sachs’ Investment Policy
Committee, answered: I’m sure
there are success stories
out there, but at this
moment I draw a blank.”
Mark Sirower, The Synergy Trap
Market Share, Anyone?
240 industries: Market-share
leader is ROA leader
the time
29% of
Source: Donald V. Potter, Wall Street Journal
Spinoffs perform better than
IPOs … track record, profits
… “freed from the confines
of the parent … more
entrepreneurial, more
nimble” —Jerry Knight/Washington Post/08.05
“I don’t believe in
You
don’t get better by
being bigger. You
get worse.”
economies of scale.
—Dick Kovacevich/
Wells Fargo/Forbes08.2004 (ROA: Wells, 1.7%;
Citi, 1.5%; BofA, 1.3%; J.P. Morgan Chase, 0.9%)
Scale’s Limitations: “All Strategy
Is Local: True competitive
advantages are harder to find and
maintain than people realize. The
odds are best in tightly drawn
markets, not big, sprawling ones”
—Title/Bruce Greenwald & Judd Kahn/HBR09.05
19. Leaders Make
[Lotsa] Mistakes –
and MAKE NO BONES
ABOUT IT!
“Fail faster.
Succeed
sooner.”
David Kelley/IDEO
Fail.
Forward.
Fast.
–High-tech Exec
Sam’s
Secret #1!
20. Leaders
Make/Tolerate/Encourage …
BIG
MISTAKES!
“Reward
excellent
failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
V. Create.
21. Leaders Put
INNOVATION
First!
“A focus on cost-cutting and efficiency has
helped many organizations weather the
downturn, but this approach will ultimately
Only the
constant pursuit of
innovation can ensure
long-term success.” —Daniel
render them obsolete.
Muzyka, Dean, Sauder School of Business, Univ of British
Columbia (FT/09.17.04)
“Almost every personal friend I have in the
world works on Wall Street. You can buy and sell
the same company six times and everybody
but I’m not sure
we’re actually
innovating. … Our challenge is to
makes money,
take nanotechnology into the future, to do
personalized medicine …” —Jeff Immelt/Fast Company/07.05
“Acquisitions are about
buying market share. Our
challenge is to
create markets.
There is a big difference.”
Peter Job, CEO, Reuters
22. Leaders
Love the
Top Line!
Top Line, Anyone?
Point (Advertising Age), to Phil Kotler: “Who should
the CMO [Chief Marketing Officer]
report to?”
Kotler: “Maybe a
Chief Revenue
Officer—the cost side has been
squeezed, now companies have to focus
on top-line growth—or maybe a
Customer Officer.
Chief
(TP: Or maybe both!)
C
*Chief
O*
Revenue
Officer
23. Leaders
Are Not
COPYCATS.
“While everything may be
it is also
increasingly
the same.”
better,
Paul Goldberger on retail, “The Sameness of Things,”
The New York Times
“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar
educational backgrounds, coming up
with similar ideas, producing
similar things, with similar prices
and similar quality.”
Kjell Nordström and Jonas Ridderstråle, Funky Business
“Companies have
defined so much ‘best
practice’ that they
are now more or less
identical.”
Jesper Kunde, Unique Now ... or Never
“To grow, companies
need to break out of a
vicious cycle of
competitive
benchmarking and
imitation.” —W. Chan Kim & Renée
Mauborgne, “Think for Yourself —Stop Copying a Rival,”
Financial Times/08.11.03
“The short road
to ruin is to
emulate the
methods of your
adversary.”
— Winston Churchill
“This is an essay about what it takes to create and sell something remarkable. It is a
plea for originality, passion, guts and daring. You can’t be remarkable by following
someone else who’s remarkable. One way to figure out a theory is to look at what’s
working in the real world and determine what the successes have in common. But
what could the Four Seasons and Motel 6 possibly have in common? Or NeimanMarcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and
Nintendo (marketing the same Game Boy 14 years in a row)? It’s like trying to drive
The thing that all these
companies have in common is that
they have nothing in common. They are
looking in the rearview mirror.
outliers. They’re on the fringes. Superfast or superslow. Very exclusive or very
cheap. Extremely big or extremely small. The reason it’s so hard to follow the leader
is this: The leader is the leader precisely because he did something remarkable. And
that remarkable thing is now taken—so it’s no longer remarkable when you decide to
do it.” —Seth Godin, Fast Company/02.2003
“Don’t
benchmark,
futuremark!”
Impetus: “The future is already here; it’s just
not evenly distributed”—William Gibson
24. Leaders
Relentlessly Pursue
DRAMATIC
DIFFERENCE!
“You do not merely want to be
You
want to be
considered the only
ones who do what
you do.”
the best of the best.
Jerry Garcia
“Get better”
vs
“Get different”
25. Leaders Bet
the Farm on the
New Technology!
We all live in
Dell-Wal*MarteBay-Google
World!
“UPS used to be a trucking company
Now it’s
a technology
company with
trucks.”
with technology.
—Forbes
Wal*Mart (!)
& Katrina
Power Tools
for Power
Solutions/
Strategies!
—TP
“Ebusiness is about
rebuilding the organization
from the ground up. Most
companies today are not built to exploit the
Internet. Their business processes, their
approvals, their hierarchies, the number of
people they employ … all of that is wrong
for running an ebusiness.”
Ray Lane, Kleiner Perkins
“Beware of the
tyranny of making
Small Changes to Small
Things. Rather, make
Big
Changes to
Things.”
Big
—Roger Enrico, former Chairman, PepsiCo
The Golden Leadership
Quadrangle: (1) Talent FanaticMentor … (2) Creator-Visionary …
(3) Inspired Profit Mechanic …
(4) Technology
Dreamer-True Believer
5% F500 have
CIO on Board:
“While some
of the world’s most admired companies—Tesco,
Wal*Mart —are transforming the business landscape
by including technology experts on their boards, the
vast majority are missing out on ways to boost
productivity, competitiveness and shareholder value.”
Source: Burson-Marsteller
26. Leaders … Make
Their Mark /
Leaders … Do Stuff
That Matters
Legacy!
“I never, ever thought of
myself as a businessman.
I was interested in
creating things
I would be
proud of.” —Richard Branson
“Success means never
letting the competition
define you. Instead you
have to define yourself based
on a point of view you care
deeply about.”
—Tom Chappell, Tom’s of Maine
“Management has a lot to do with
answers. Leadership is a function of
questions. And the first question for
‘Who
do we intend to
be?’ Not ‘What are we going to
a leader always is:
do?’ but ‘Who do we intend to be?’”
—Max De Pree, Herman Miller
Ah, kids: “What is your vision for
the future?” “What have you
accomplished since your first
book?” “Close your eyes and
imagine me immediately doing
something about what you’ve
just said. What would it be?”
“Do you feel you have an
obligation to ‘Make the world a
better place’?”
VI. Value
Added
27. Leaders Push Their
W-a-y Up the
Value-added/
Intellectual Capital
Chain
Organizations
And the “M” Stands for … ?
“Systems
Integrator of
choice.”
Gerstner’s IBM:
(BW)
IBM Global Services:
$55B
Planetary Rainmaker-in-Chief
“[Sam] Palmisano’s strategy is to
expand tech’s borders by pushing
users—and entire industries—
toward radically different business
models. The payoff for IBM would be access
to an ocean of revenue—Palmisano estimates it
at $500 billion a year—that technology
companies have never been able to touch.”
—Fortune/06.14.04
“Big Brown’s New Bag: UPS
Traffic
Manager for
Corporate
America”
Aims to Be the
—Headline/BW
28. Leaders Turn Every
“Department” into an
Innovation leader/ Value-
adding
“PSF”!*
*Professional Service Firm
“ ‘Disintermediation’ is overrated. Those who fear
disintermediation should in fact be afraid of
disintermediation is
just another way of saying
that you’ve become
irrelevant to your
customers.”
irrelevance—
—John Battelle/Point/Advertising Age/07.05
Sarah:
Mom:
“ Mom, what do
you do?”
“I’m ‘overhead.’ ”
Sarah:
Mom:
“ Mom, what do
you do?”
“I manage a
‘cost center.’ ”
Answer: PSF!
[Professional Service Firm]
Department Head
to …
Managing Partner,
HR [IS, R&D,etc.] Inc.
Point of
View!
DD$21M
29. Leaders Know that the
Value-added Revolution” rests
Emphasizing
the Intangibles!
upon:
Offer Scintillating …
Experiences!
Sales per Square Foot/Grocery
Albertson’s: $384
Wal*Mart: $415
Whole Foods:
$798
“Experiences are as
distinct from services
as services are from
goods.”
Joseph Pine & James Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
Experience: “Rebel Lifestyle!”
“What we sell is the ability for
a 43-year-old accountant to
dress in black leather, ride
through small towns and have
people be afraid of him.”
Harley exec, quoted in Results-Based Leadership
The “Experience Ladder”
Experiences
Services
Goods
Raw Materials
Q: “Why did you buy Jordan’s
Furniture?”
It’s
all showmanship.
A: “Jordan’s is spectacular.
Source: Warren Buffet interview/Boston Sunday Globe
One company’s answer:
C
*Chief e
O*
Xperience Officer
Prep …
DRALION—
Cirque du
Soleil
What we need is …
Love!
“Brands
have
run out of
juice. They’re
dead.”
—Kevin Roberts/Saatchi &
Saatchi
Kevin Roberts:
Lovemarks!
Brand …………………………………………………. Lovemark
Recognized by consumers ………………. Loved by People
Generic ………………………………………………… Personal
Presents a narrative ………………….. Creates a Love story
The promise of quality ……………… A touch of Sensuality
Symbolic ………………………………………………….. Iconic
Defined ………………………………………………….. Infused
Statement ………………………………………………….. Story
Defined attributes ……………………... Wrapped in Mystery
Values ………………………………………………………. Spirit
Professional …………………………... Passionately Creative
Advertising agency ………………………….. Ideas company
Source: Kevin Roberts, Lovemarks
“When we were working
through the essentials
of a Lovemark,
Mystery
was
always at the top of the
list.” —Lovemarks: The Future Beyond Brands, Kevin
Roberts
Tattoo Brand: What %
of users would tattoo
the brand name on
their body?
Top 10 “Tattoo Brands”*
Harley .… 18.9%
Disney .... 14.8
Coke …. 7.7
Google .... 6.6
Pepsi .... 6.1
Rolex …. 5.6
Nike …. 4.6
Adidas …. 3.1
Absolut …. 2.6
Nintendo …. 1.5
*BRANDsense: Build Powerful Brands through Touch,
Taste, Smell, Sight, and Sound, Martin Lindstrom
Understand that the BEDROCK is …
Gasp-worthy
Design!
All Equal Except …
“At Sony we assume that all products of
our competitors have basically the same
technology, price, performance and
Design is the only
thing that
differentiates one
product from another
in the marketplace.”
features.
Norio Ohga
“Design is treated
like a religion at
BMW.”
Fortune
“We don’t have a good language to talk
about this kind of thing. In most people’s
vocabularies, design means veneer. …
But to me, nothing could be further from
Design
is the fundamental
soul of a man-made creation.”
the meaning of design.
Steve Jobs
“Having spent a century or more focused on other goals—
solving manufacturing problems, lowering costs, making goods
and services widely available, increasing convenience, saving
energy—we are increasingly engaged in making our world
special. More people in more aspects of life are drawing
pleasure and meaning from the way their persons, places and
Whenever we have the
chance, we’re adding sensory,
emotional appeal to ordinary
function.” — Virginia Postrel, The Substance of Style: How the
things look and feel.
Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness
“With its carefully conceived mix of colors and
textures, aromas and music, Starbucks is more
indicative of our era than the iMac. It is to the Age of
Aesthetics what McDonald’s was to the Age of
Convenience or Ford was to the Age of Mass
Production—the touchstone success story, the
exemplar of all that is good and bad about the
aesthetic imperative. … ‘Every Starbucks store is
carefully designed to enhance the quality of
everything the customers see, touch, hear,
smell or taste,’ writes CEO Howard Schultz.” —Virginia
Postrel, The Substance of Style: How the Rise of Aesthetic Value Is
Remaking Commerce, Culture and Consciousness
Marketing “Magic”*
The “Missing 95%”:
The Unconscious!
*E.g. ZMET/Zaltman Metaphor Evaluation Technique
“If you can’t
win on ‘cost,’
then you’re left
with ‘cool.’ ” —Anon.
30. Leaders Pursue
the “Big Two”
NEW MARKET
OPPORTUNITIES
Women!
Good Thinking, Guys!
“Kodak Sharpens Digital
Focus On Its Best
Customers:
Women”
—Page 1 Headline/WSJ/0705
?????????
Home Furnishings … 94%
Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)
Houses … 91%
D.I.Y. (major “home projects”) … 80%
Consumer Electronics … 51% (66% home computers)
Cars … 68% (90%)
All consumer purchases … 83%
Bank Account … 89%
Household investment decisions … 67%
Small business loans/biz starts … 70%
Health Care … 80%
Thanks,
Marti
Barletta!
The Perfect Answer
Jill and Jack buy
slacks in black…
1. Men and women are different.
2. Very different.
3. VERY, VERY DIFFERENT.
4. Women & Men have a-b-s-o-l-u-t-e-l-y
nothing in common.
5. Women buy lotsa stuff.
6. WOMEN BUY A-L-L THE STUFF.
7. Women’s Market = Opportunity No. 1.
8. Men are (STILL) in charge.
9. MEN ARE … TOTALLY, HOPELESSLY
CLUELESS ABOUT WOMEN.
10. Women’s Market = Opportunity No. 1.
Boomers Geezers
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64: +47%)
“Marketers attempts at
reaching those over 50 have
been miserably
unsuccessful. No market’s
motivations and needs are
so poorly understood.”
—Peter
Francese, founding publisher, American Demographics
44-65: “New
Customer
Majority” *
*45% larger than 18-43; 60% larger by 2010
Source: Ageless Marketing, David Wolfe & Robert Snyder
“The New Customer
Majority is the only adult
market with realistic
prospects for significant
sales growth in dozens of
product lines for thousands
of companies.” —David Wolfe & Robert
Snyder, Ageless Marketing
VII. Talent.
31. When It Comes to
TALENT …
Leaders Always Go
Berserk!
Brand =
Talent.
“Human creativity
is the ultimate
economic
resource.”
—Richard Florida,
The Rise of the Creative Class
“The Creative
Age is a wide-
open game.”
—Richard Florida, The Rise of the Creative Class
From “1, 2 or you’re out” [JW]
to …
“Best Talent in each
industry segment to build
best proprietary
intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
PARC’s Bob Taylor:
“Connoisseur
of Talent ”
“We believe companies can increase their market cap
50 percent in 3 years. Steve Macadam at Georgia-
changed 20 of his 40
box plant managers to put
more talented, higher paid
managers in charge. He increased
Pacific
profitability from $25 million to $80 million in 2 years.”
Ed Michaels, War for Talent
Did We Say “Talent Matters”?
“The top software developers are more
productive than average software
developers not by a factor of 10X or 100X,
or even 1,000X,
but
10,000X.”
—Nathan Myhrvold, former Chief Scientist, Microsoft
Our Mission
To develop and manage talent;
to apply that talent,
throughout the world,
for the benefit of clients;
to do so in partnership;
to do so with profit.
WPP
“Omnicom very simply is
about talent. It’s about
the acquisition of talent,
providing the
atmosphere so talent is
attracted to it.” —John Wren
A “Life
Success
Company”
RE/MAX:
Source: Everybody Wins, Phil Harkins & Keith Hollihan
“HR doesn’t tend to hire
a lot of independent
thinkers or people who
stand up as moral
compasses.” —Garold Markle,
Shell Offshore HR Exec (FC/08.05)
Are you “Rock
Stars of the
Age of Talent”
Talent
Department
People Department
Center for Talent Excellence
Seriously Cool People Who Recruit
& Develop Seriously Cool People
Etc.
32. Leaders
Know …WOMEN
RULE.*
*Duh.
“AS LEADERS, WOMEN
RULE: New Studies find
that female managers
outshine their male
counterparts in almost every
measure”
Title, Special Report, Business Week
Women’s Strengths Match New Economy
Imperatives: Link [rather than rank] workers;
favor interactive-collaborative leadership style
[empowerment beats top-down decision making];
sustain fruitful collaborations; comfortable with
sharing information; see redistribution of power
as victory, not surrender; favor multi-dimensional
feedback; value technical & interpersonal skills,
individual & group contributions equally; readily
accept ambiguity; honor intuition as well as pure
“rationality”; inherently flexible; appreciate
cultural diversity.
Source: Judy B. Rosener, America’s Competitive Secret
????????
Duh!
“We want our associate population to
mirror our customer population at
every level, from the executive suite all
the way to the retail floor. In the marketplace,
basically what I want to do is draw a concentric circle around
every one of our 2,300 stores, and I want the assortment in that
store to match the ethnicity of the neighborhood it’s in. Some
neighborhoods are all Hispanic, so we can put in a full Hispanic
format. That’s what Super Saver is. All the signage is in both
languages. There’s a 100 percent Spanish-speaking staff in the
store.” —Larry Johnston, CEO, Albertsons
33. Leaders
Hire WEIRD
Employees: “Are there
enough weird
people in the lab
these days?”
V. Chmn., pharmaceutical house, to a lab director
Why Do I love Freaks?
(1) Because when Anything Interesting happens … it was a freak
who did it. (Period.)
(2) Freaks are fun. (Freaks are also a pain.) (Freaks are never
boring.)
(3) We need freaks. Especially in freaky times. (Hint: These are
freaky times, for you & me & the CIA & the Army & Avon.)
(4) A critical mass of freaks-in-our-midst automatically make uswho-are-not-so-freaky at least somewhat more freaky. (Which is
a Good Thing in freaky times—see immediately above.)
(5) Freaks are the only (ONLY) ones who succeed—as in, make it
into the history books.
(6) Freaks keep us from falling into ruts. (If we listen to them.)
(We seldom listen to them.) (Which is why most of us—and our
organizations—are in ruts. Make that chasms.)
“The Bottleneck is at
the Top of the Bottle”
“Where are you likely to find people with the least
diversity of experience, the largest investment in
the past, and the greatest reverence for industry
dogma?
At the top!”
— Gary Hamel/“Strategy or Revolution”/Harvard Business Review
Saviors-in-Waiting
Disgruntled Customers
Off-the-Scope Competitors
Rogue Employees
Fringe Suppliers
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue Employees
34. Leaders Strongly
Urge All Employees
Follow the “BRAND
YOU” ADVENTURE
“We live in a
‘Brand You’
world.”
—Tom Peters
“If there is nothing
very special about
your work, no matter how
hard you apply yourself you
won’t get noticed, and that
increasingly means you won’t get
paid much either.”
Michael Goldhaber, Wired
“You are the
storyteller of your
own life, and you
can create your own
legend or not.”
Isabel Allende
New Work SurvivalKit2005
1. Mastery! (Best/Absurdly Good at Something!)
2. “Manage” to Legacy (All Work = “Memorable”/“Braggable” WOW
Projects!)
3. A “USP”/Unique Selling Proposition (R.POV8: Remarkable Point of
View … captured in 8 or less words)
4. Rolodex Obsession (From vertical/hierarchy/“suck up” loyalty to
horizontal/“colleague”/“mate” loyalty)
5. Entrepreneurial Instinct (A sleepless … Eye for Opportunity!
E.g.: Small Opp for Independent Action beats faceless part of
Monster Project)
6. CEO/Leader/Businessperson/Closer (CEO, Me Inc. Period! 24/7!)
7. Mistress of Improv (Play a dozen parts simultaneously, from
Chief Strategist to Chief Toilet Scrubber)
8. Sense of Humor (A willingness to Screw Up & Move On)
9. Comfortable with Your Skin (Bring “interesting you” to work!)
10. Intense Appetite for Technology (E.g.: How Cool-Active is your
Web site? Do you Blog?)
11. Embrace “Marketing” (Your own CSO/Chief Storytelling Officer)
12. Passion for Renewal (Your own CLO/Chief Learning Officer)
13. Execution Excellence! (Show up on time! Leave last!)
A “position” is not an
“accomplishment.” —TP
Distinct …
or … Extinct
34A (Bonus).
Leaders
Are Angry that the School
System Is their Enemy, Not
Their Ally!*
*From Stem to Stern!
“My wife and I went to a [kindergarten] parent-teacher
conference and were informed that our budding
refrigerator artist, Christopher, would be receiving a
grade of Unsatisfactory in art. We were shocked. How
could any child—let alone our child—receive a poor
His teacher
informed us that he had refused to
color within the lines, which was a
state requirement for
demonstrating ‘grade-level motor
skills.’ ” —Jordan Ayan, AHA!
grade in art at such a young age?
15 “Leading” Biz Schools
Design/Core: 0
Design/Elective: 1
Creativity/Core: 0
Creativity/Elective: 4
Innovation/Core: 0
Innovation/Elective: 6
Source: DMI/Summer 2002
Research by Thomas Lockwood
Ye gads: “Thomas
Stanley has not
only found no correlation between
success in school and an ability to
accumulate wealth, he’s actually
found a negative correlation. ‘It seems
that school-related evaluations are poor predictors of economic
success,’ Stanley concluded. What did predict success was a
willingness to take risks. Yet the success-failure standards of
most schools penalized risk takers. Most educational systems
reward those who play it safe. As a result, those who do well in
school find it hard to take risks later on.”
Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins
VIII. Passion.
35. Leaders …
“Sell”
PASSION!
“Create a
‘cause,’ not
a ‘business.’ ”
G.H.:
“In the end,
management doesn’t
change culture.
Management invites
the workforce itself to
change the culture.”
—Lou Gerstner
36. Leaders Know:
ENTHUSIASM BEGETS
ENTHUSIASM!
ENERGY BEGETS
ENERGY!
BZ: “I am a …
Dispenser of
Enthusiasm!”
“Most important,
he upped the
energy level
at Motorola.”
—Fortune on Ed Zander/08.05
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
James Woolsey, former CIA director:
“If
you’re enthusiastic
about the things
you’re working on,
people will come ask
you to do interesting
things.”
“Before you can inspire with
emotion, you must be
swamped with it yourself.
Before you can move their
tears, your own must flow. To
convince them, you must
yourself believe.” —Winston Churchill
“A man without
a smiling face
must not open a
shop.”
—Chinese Proverb*
*Courtesy Tom Morris, The Art of Achievement
37. Leaders
Focus on the
SOFT STUFF!
“Hard” Is “Soft”
“Soft” Is “Hard”
—In Search of Excellence
Message: Leadership is
all about love! [Passion,
Enthusiasms, Appetite for Life,
Engagement, Commitment, Great
Causes & Determination to Make a
Damn Difference, Shared Adventures,
Bizarre Failures, Growth, Insatiable
Appetite for Change.] [Otherwise, why bother?
Just read Dilbert. TP’s final words: CYNICISM SUCKS.]
IX. The “Job”
of Leading.
38.
Leaders Know It’s
ALL SALES ALL
THE TIME.
If you don’t
LOVE SALES …
find another life.
TP:
(Don’t pretend you’re a “leader.”)
39. Leaders
LOVE
“POLITICS.”
If you don’t LOVE
POLITICS … find
another life. (Don’t pretend
TP:
you’re a “leader.”)
40. Leaders
Give …
RESPECT!
Amen!
“What creates trust,
in the end, is the
leader’s manifest
respect for the
followers.” — Jim O’Toole, Leading
Change
“It was much later that I realized
Dad’s secret. He gained respect by
giving it. He talked and listened to
the fourth-grade kids in Spring Valley
who shined shoes the same way he
talked and listened to a bishop or a
college president. He
was
seriously interested in who
you were and what you
had to say.” —Sara Lawrence-Lightfoot, Respect
“The deepest human need
need to be
appreciated.”
is the
William James
“The two most powerful
a
kind word and a
thoughtful
gesture.”
things in existence:
Ken Langone, CEO, Invemed Associates [from Ronna
Lichtenberg, It’s Not Business, It’s Personal]
41. Leadership
Is a …
Performance.
“It is necessary for the
President to be the
No. 1
actor.”
nation’s
FDR
42. Leaders …
GREAT
STORY!
Have a
“Leaders don’t just make
products and make decisions.
Leaders make
meaning.”
– John Seely Brown
“A key – perhaps the key –
to leadership is
the effective
communication
of a story.”
Howard Gardner, Leading Minds: An Anatomy of Leadership
Leader Job 1
Paint
Portraits of
Excellence!
43. Leaders love the
word …
Excellence!
44. Leaders … Are
The Brand
be
“You must
the
change you wish
to see in the
world.” —Gandhi
“To change minds
effectively, leaders make
particular use
of two tools: the stories
that they tell and
the lives that they
lead.” —Howard Gardner, Changing Minds
“You can’t lead a
cavalry charge if
you think you
look funny on a
horse.”
—John Peers, President, Logical Machine Corporation
X. Introspection.
45.
Leaders …
ENJOY
LEADING.
“Warren, I know you
want to ‘be’
president. But do you
want to ‘do’
president?”
46. Leaders
LAUGH!
47. Leaders …
KNOW
THEMSELVES.
Step #1:
Buy a
Mirror!
“The First step in a
‘dramatic’ ‘organizational
change program’ is
obvious—dramatic
personal change!” —RG
XI. The End
Game.
48. Great Leaders
Play Offense!
“[Other]
admirals more
frightened of
losing than
anxious to win”
Nelson’s secret:
49. Great Leaders
Live on the
Edge!
Kevin Roberts’ Credo
1. Ready. Fire! Aim.
2.
3.
4.
5.
6.
7.
8.
9.
If it ain’t broke ... Break it!
Hire crazies.
Ask dumb questions.
Pursue failure.
Lead, follow ... or get out of the way!
Spread confusion.
Ditch your office.
Read odd stuff.
10. Avoid moderation!
50. Leaders Free
the Lunatic
Within!
The greatest danger
for most of us
is not that our aim is
too high
and we miss it,
but that it is
too low
and we reach it.
Michelangelo
“You can’t behave
in a calm, rational
manner. You’ve got
to be out there on
the lunatic fringe.”
— Jack Welch
51. Leaders
(and Management Gurus)
WHEN TO
LEAVE!
Know
“In classical times when
Cicero had finished
speaking, the people said,
‘How well he spoke,’ but when
Demosthenes had finished
speaking, they said,
us march.’”
‘Let
—Adlai Stevenson
Let us
march